IFC, EBRD will invest $115.5 million in Georgia's energy sector
Georgia, Tbilisi, June 24 / Trend N.Kirtzkhalia /
The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development will invest $115.5 million in Georgia's Paravani hydropower plant to reduce the country's dependence on carbon-based electricity and increase its energy self-sufficiency by promoting investment.
The IFC and EBRD will allocate $40.5 million and $52 million, respectively, to Georgia Urban Energy, a subsidiary of Turkey's Anadolu Endustri Holding, drawing a further $23 million from commercial banks.
An 87-megawatt Parvani hydropower plant is the first renewable-energy sector investment project financed by the IFC and EBRD in Georgia.
Anadolu Endustri Holding's Financial Director Hursit Zorlu said the Paravani project will expand Anadolu's renewable-energy generation capacity. "It will also benefit the Turkish electricity market to which Paravani hydropower plant will be able to export green energy," he added.
"The IFC and EBRD are playing a key role in funding the Anadolu Group's sustainable energy investments in Georgia," Head of the Energy Group, Anadolu Group Tuрban Aksoy said. "I hope that this strategic support will contribute attracting other investors in the country's renewable-energy market."
The Parvani hydropower plant will provide Georgia with electricity in the winter when the country is energy deficient. It will export energy to Turkey in the summer.
"Among the IFC's key priorities is addressing climate change through investments in sustainable energy," IFC Director for Infrastructure and Natural Resources in Europe, the Middle East and North Africa Gulrez Hoda said. "Paravani is a ground-breaking project that supports Georgia's efforts to increase the output of renewable energy, avoid carbon emissions, and achieve energy self-sufficiency."